Finance
BlackRock's Climate Lurch Puts These Coal Companies at Risk of Divestment
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BlackRock Inc. says it plans to cut its exposure to thermal coal because of concerns about climate change. The move sends a strong signal to rival firms and miners, but the reality is so much of BlackRock’s investments are in passively managed index funds that the world’s largest asset manager is still going to be stuck holding a lot of coal.
Chief Executive Officer Larry Fink wrote in a letter to clients on Wednesday that BlackRock will eliminate companies that get more than 25% of sales from thermal coal from its actively managed investment portfolios by the middle of this year. There isn’t a long-term economic or investment rationale for continuing to invest in the fuel, he said.